(a) Proceeds.--Except as provided in subsection (b):
(1) any proceeds or other benefits of a derivative action, whether by judgment, compromise or settlement, belong to the nonprofit corporation and not to the plaintiff; and
(2) if the plaintiff or its counsel receives any proceeds, the proceeds shall be remitted immediately to the corporation.
(b) Expenses.--If a derivative action is successful in whole or in part, the court may award the plaintiff reasonable expenses, including reasonable attorney fees and costs, from the recovery of the nonprofit corporation, but in no event shall the attorney fees awarded exceed a reasonable proportion of the value of the relief, including nonpecuniary relief, obtained by the plaintiff for the corporation.
(Nov. 21, 2016, P.L.1328, No.170, eff. 90 days)
2016 Amendment. Act 170 added section 5784.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 57 - Officers, Directors and Members
Section 5701 - Applicability of subchapter
Section 5702 - Manner of giving notice
Section 5702.1 - Optional procedures for giving of notice (Repealed)
Section 5703 - Place and notice of meetings of board of directors or other body
Section 5704 - Place and notice of meetings of members
Section 5705 - Waiver of notice
Section 5706 - Modification of proposal contained in notice
Section 5707 - Exception to requirement of notice
Section 5708 - Use of conference telephone or other electronic technology
Section 5709 - Conduct of members meeting
Section 5711 - Alternative provisions
Section 5712 - Standard of care, justifiable reliance and business judgment rule
Section 5713 - Personal liability of directors
Section 5714 - Presumption of assent
Section 5715 - Exercise of powers generally
Section 5716 - Alternative standard
Section 5717 - Limitation on standing
Section 5719 - Renunciation of corporate opportunities
Section 5721 - Board of directors
Section 5722 - Qualifications of directors
Section 5723 - Number of directors
Section 5724 - Term of office of directors
Section 5725 - Selection of directors
Section 5726 - Removal of directors
Section 5727 - Quorum of and action by directors
Section 5728 - Interested directors or officers; quorum
Section 5729 - Voting rights of directors
Section 5730 - Compensation of directors
Section 5731 - Executive and other committees of the board
Section 5733 - Removal of officers and agents
Section 5733.1 - Officer's standard of care and justifiable reliance
Section 5733.2 - Personal liability of officers
Section 5741 - Third-party actions
Section 5742 - Derivative and corporate actions
Section 5743 - Mandatory indemnification
Section 5744 - Procedure for effecting indemnification
Section 5745 - Advancing expenses
Section 5746 - Supplementary coverage
Section 5747 - Power to purchase insurance
Section 5748 - Application to surviving or new corporations
Section 5749 - Application to employee benefit plans
Section 5750 - Duration and extent of coverage
Section 5751 - Classes and qualifications of membership
Section 5752 - Organization on a stock share basis
Section 5753 - Membership certificates
Section 5754 - Members grouped in local units
Section 5755 - Time of holding meetings of members
Section 5757 - Action by members
Section 5758 - Voting rights of members
Section 5759 - Voting and other action by proxy
Section 5762 - Voting by corporations
Section 5763 - Determination of members of record
Section 5764.1 - Actions by members to enforce a secondary right (Repealed)
Section 5765 - Judges of election
Section 5766 - Consent of members in lieu of meeting
Section 5767 - Appointment of custodian of corporation on deadlock or other cause
Section 5768 - Reduction of membership below stated number
Section 5769 - Termination and transfer of membership
Section 5770 - Voting powers and other rights of certain securityholders and other entities
Section 5781 - Derivative action
Section 5782 - Eligible member plaintiffs and security for costs
Section 5783 - Special litigation committee
Section 5784 - Proceeds and expenses
Section 5791 - Corporate action subject to subchapter